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  • GEN 4.1 GEN 4.1 Principles for Authorised Firms — application

    • GEN 4.1.1

      (1) The twelve Principles for Authorised Firms, set out in GEN section 4.2, apply subject to (2) and (3) to every Authorised Firm in accordance with Rules GEN 4.1.2 and GEN 4.1.3.
      (2) The twelve Principles for Authorised Firms, set out in GEN section 4.2, do not apply to an Authorised Firm which is a Representative Office.
      (3) An Authorised Firm which is a Credit Rating Agency does not have to comply with the Principles set out in Rules GEN 4.2.6, GEN 4.2.7, GEN 4.2.8 and GEN 4.2.9.
      Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
      [Amended]DFSA RM43/2007 (Made 1st June 2007). [VER14/06-07]
      [Amended] DFSA RM68/2009 (Made 3rd January 2010). [VER24/01-10]
      [Amended] DFSA RM95/2012 (Made 14th June 2012). [VER29/06-12]
      [Amended] DFSA RM96/2012 (Made 24th July 2012) [VER30/07-12]

    • GEN 4.1.2

      (1) For the purposes of GEN Rule 4.1.3 the term 'activities' means:
      (a) Financial Services business;
      (b) activities carried on in connection with a Financial Service business;
      (c) activities held out as being for the purpose of a Financial Service business; and
      (d) in relation to any particular Principle, any activity specified in (2), (3) and (4).
      (2) Principles 3 and 4 also apply in a Prudential Context to an Authorised Firm with respect to the carrying on of all its activities.
      (3) Principles 3 and 4 also take into account any activities of other members of the Group of which the Authorised Firm is a member.
      (4) Principles 10 and 11, to the extent that it relates to disclosing to the DFSA, also applies to an Authorised Firm with respect to the carrying on of all its activities, and takes into account any activities of other members of the Group of which the Authorised Firm is a member.

      Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
      [Amended]DFSA RM43/2007 (Made 1st June 2007). [VER14/06-07]
      [Amended] DFSA RM95/2012 (Made 14th June 2012). [VER29/06-12]

    • GEN 4.1.3 GEN 4.1.3

      (1) The Principles apply to an Authorised Firm only with respect to activities carried on from an establishment maintained by it in the DIFC, unless an extension in (2), (3), (4) or (5) applies.
      (2) Where another applicable Rule, which is relevant to the activity, has a wider territorial scope than that in (1), any related Principle applies with that wider scope in relation to the activity described in the Rule.
      (3) Principles 1, 2 and 3 apply in a Prudential Context to an Authorised Firm with respect to activities wherever they are carried on.
      (4) Principles 4 and 11 apply to an Authorised Firm with respect to activities wherever they are carried on.
      (5) Principle 5 also applies to an Authorised Firm with respect to the activities carried on in or from any place outside the DIFC if and to the extent that the activities have, or might reasonably be regarded as likely to have, a negative effect on confidence in the financial markets operating in the DIFC.
      Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
      [Amended]DFSA RM43/2007 (Made 1st June 2007). [VER14/06-07]

      • GEN 4.1.3 Guidance

        1. The Principles for Authorised Firms have the status of Rules and are a general statement of fundamental regulatory requirements which apply alongside the other Rules and also in new or unforeseen situations which may not be covered elsewhere by a specific Rule. Rules in other areas of the Rulebook build upon these fundamental principles. Consequently the Rules and Guidance elsewhere in the Rulebook should not be seen as exhausting the implications of the Principles.
        2. Breaching a Principle for Authorised Firms makes an Authorised Firm liable to disciplinary action, and may indicate that it is no longer fit and proper to carry on a Financial Service or to hold a Licence and the DFSA may consider withdrawing authorisation or the Licence on that basis.
        3. The onus will be on the DFSA to show that the Authorised Firm has been at fault in some way, taking into account the standard of conduct required under the Principle in question.

        Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]